Pepper Money has revamped its residential mortgage range by lifting loan-to-value ratios, improving criteria and cutting rates.

The specialist lender has raised the maximum LTV on its Pepper 18 and Pepper 12 products to 85% and increased the maximum LTV on Pepper 6 to 80%. These products are available to customers who have not had a county court judgement or default in 18, 12, or 6 months, respectively.

The firm has also boosted its criteria to include variable income as part of its affordability calculations. It now considers up to 50% of sustained bonus and commission payments and up to 50% of overtime payments.

Finally, the business has cut rates across its Pepper 6 range.

Prices on Pepper 6 Light — available to customers who have not had a default in the last 6 months and have never had a county court judgement — start at 4.90% for a two-year fixed-rate loan and 5.10% for a five-year fixed-rate deal to 70% LTV.

On Pepper 6, rates start at 4.95% for a two-year fixed-rate mortgage and up to 5.15% for a five-year fixed-rate offer up to 70% LTV.

Pepper Money sales director Paul Adams says: “These are significant enhancements to our proposition that will make Pepper Money mortgages more accessible to an even wider group of customers.

“We have taken on feedback from our intermediaries and amended key criteria, such as increasing LTVs for customers with recent adverse credit, reintroducing the acceptance of variable income, which had been suspended due to the pandemic.

“Thanks to our simpler tiers and transparent products, it’s never been easier for a broker to identify the most suitable Pepper Money mortgage for their clients.”